Hi,
If money is going from the government to the auto makers, it out to be
based on results: they should be able to build models that get a
minimum combined fuel mileage of 25mpg (better aero and other virtually "free" efficiencies!), and this should increase by 1 mpg per year. Any models that get less than this must be priced to include a 10% penalty that the government gets to collect to pay back the taxpayers.
If they can build the efficient cars and sell them, then they get R&D money from the government and maybe some tax credits.
The USA should adopt the same diesel standards as Europe; and also the best models sold in Europe and Japan, etc., should be immediately sold in the USA.
All car companies should immediately improve their existing models, to get the efficiencies as soon as possible. If the whole country -- the whole world is going into a slowdown, then the car companies must take their lumps along with the rest of us.